Question: Joe borrows RM10,000 for 10 years and uses a sinking fund to repay the principal. The sinking fund deposits earn an annual effective interest rate

Joe borrows RM10,000 for 10 years and uses a sinking fund to repay the principal. The sinking fund deposits earn an annual effective interest rate of 5%. The total required payment for both the interest and sinking fund deposit at the end of each year is RM1500. Calculate the annual effective interest rate charged on the loan. a. 0.070 b. 0.052 c. 0.069 d. 0.082

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